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Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,201,000 887,000 $ 314,000 $ 1,040,000 Stream Division
Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,201,000 887,000 $ 314,000 $ 1,040,000 Stream Division $ 1,803,000 1,281,000 $ 522,000 $ 1,550,000 Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 7.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $251,000 in each division, an amount that generates $115,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Calculate return on investment (ROI) and residual income for each division for last year. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.) River Division Stream Division ROI % Residual Income (Loss) Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,201,000 887,000 $ 314,000 $ 1,040,000 Stream Division $ 1,803,000 1,281,000 $ 522,000 $ 1,550,000 Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 7.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $251,000 in each division, an amount that generates $115,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating Income increases by 9 percent. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign. River Division Stream Division ROI % Residual Income (Loss) < Req 1 Req 2B > Show less A Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,201,000 887,000 $ 314,000 $ 1,040,000 Stream Division $ 1,803,000 1,281,000 $ 522,000 $ 1,550,000 Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 7.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $251,000 in each division, an amount that generates $115,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Recalculate ROI and residual incom by 8 percent. Req 2B ilon for the independent situation that follows: Operating Income decreases Note: Enter your ROI answers as a peremeye rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign. ROI Residual Income (Loss) River Division % Stream Division < Req 2A Req 2C > Show less A Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,201,000 887,000 $ 314,000 $ 1,040,000 Stream Division $ 1,803,000 1,281,000 $ 522,000 $ 1,550,000 Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 7.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $251,000 in each division, an amount that generates $115,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $251,000 in each division, an amount that generates $115,000 additional Income per division. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Round your "Residual Income (Loss)" answer to the nearest whole dollars. Loss amounts should be indicated with a minus sign. River Division Stream Division ROI % Residual Income (Loss) < Req 2B Req 2D > Show less A Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,201,000 887,000 $ 314,000 $ 1,040,000 Stream Division $ 1,803,000 1,281,000 $ 522,000 $ 1,550,000 Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 7.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $251,000 in each division, an amount that generates $115,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 5.26 percent. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign. River Division Stream Division ROI % % Residual Income (Loss)
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